JSE: Heavy trading in Lasco stocks

June 21, 2013 by

Friday, 21st June 2013 | The local market traded 6.185 million shares at a value of $67 million, with the bulk of the trading taking place for the second day running in the junior market as two Lasco companies accounted for nearly $50 million of stocks traded.

Mayberry was again the dominant broker buying virtually all the Lasco Manufacturing traded as they bought 1.3 million units from clients for their own account. They were also the big trader in Lasco Distributors in which they picked up 1.74 million shares for their own account, which they bought from their clients. They were the only trader for General Accident Insurance that traded 759,000 shares.

Advances turn | The advance decline ratio was slightly negative once more with 8 stocks advancing in price versus 9 that declined.

Main Market | Trading in the main market was subdued today as more focus seemed to have been on the junior market stocks. The main indices fell moderately except for the junior market.

Carreras traded 45,840 units and gained 90 cents to close at $57.90, Hardware & Lumber 49 cents to close at $3.86 as just 200 of its shares trading. Grace traded 10,160 shares as the stock closed at $60.25 and was up 20 cents. JMMB lost 50 cents to close at $7.50 as just 94,792 shares traded. Proven Investments traded 526,215 shares at a value of US$58,000.

Juniors up | Six stocks traded in the junior market as the index put on 18.52 points to close at 788.3 with 4 increasing in price and 2 falling. Lasco Distributors closed up 60 cents at $15.90. Lasco Manufacturing lost 30 cents to close at $15.50.

IC bid-offer Indicator | At the end of trading, the IC bid-offer sentiment indicator shows that bids for 8 stocks were higher, with 4 stocks that had an offer that was lower than their last selling price. Of note is Access Financial, that has not traded for some time, now has a bid of $8.20 with the last selling price of $8.10. Cargo Handlers bid was at $11, the last sale took place at $10.55, Lasco Financial bid is at $10.70 with the last sale taking place at $10.10.

JSEIndicesJun21

Filed Under: JSE Main Market, Stock Market Tagged With: , ,

CPJ denies major customs breach

June 21, 2013 by

Statement released by Caribbean Producers Ltd | It has come to our attention that recent newspaper articles and press reports refer to breaches of the Customs Act by a major importer operating out of Western Jamaica that is listed on the Jamaica Stock Exchange.

While these reports do not name our Company, CARIBBEAN PRODUCERS (JAMAICA) LIMITED as the entity in question, we wish to advise our shareholders and the wider public that we consider such reports to be erroneous.

The Company is a leading food service company and hotel supplier in Jamaica. It sources its products from some 30 countries and imports thousands of unique items in up to 100 containers per month. The Company considers that it has worked closely with the Customs Department and the Ministry of Finance in establishing and growing its business during the course of the last 18 years.

CaribbeanProducers(CPJ)280X150Contrary to the press reports, the Company continues to have the status of ‘AUTHORISED ECONOMIC OPERATOR’ (AEO), which is granted by the Jamaica Customs Department. Changes to the AEO program were introduced by the Customs Department and the Company, along with other AEOs, will need to comply with certain requirements leading to security certification by 31 October 2013.

More recently, one of the suppliers of the Company mislabelled a relatively small number of cases of pork products that the Company inadvertently imported in a large container containing a total of approximately 500 cases of pork bellies. This matter is under discussion with the Customs Department and the relevant supplier has admitted its liability, which arose due to their error, and has offered to pay any fines on behalf of the Company, which the Company believes will not exceed J$1.1M.

Any other information published by the press in relation to the Company’s position as regards the Customs Act, including references to potential fines in the region of J$3 billion, is not correct. The Company is committed to being a good corporate citizen and responsible publicly traded company, operating within the law and with regard to the principles of good governance.

Filed Under: Company News, General Business News Tagged With: ,

JSE: It was Lasco’s day

June 20, 2013 by

Thursday, 20th June 2013 | Right on the heels of the Lasco group participating in the Mayberry Investor forum on Wednesday. trading picked up in all three stocks with Mayberry doing the bulk of the trading, many of them crosses. Early in the trading session attempts were made to trade as high as $18  for both Manufacturing and Distributors but were cancelled later as the price exceeded the limitation set by the exchange in a day. So dominant was the Lasco trading that of 132 transactions, the three companies accounted for 48 while JMMB accounted for 17.

Junior’s down | Nine stocks traded in the junior market, with 5 increasing in price and 3 falling. Lasco Manufacturing gained $1.80 to close at $15.80 as 1,891,055 of its shares traded at a value of $29.8 million. Lasco Distributors closed up $2.30 at $15.30 as 905,219 of the company’s shares traded, valued at $13.63 million. Lasco Finance traded as high as $11.25 but closed at $10.10 as 248,561 units traded, valued at $2.65 million. Blue Power moved up $1 to close at $10 as 215,987 of the stock traded, valued at $2.24 million.

Caribbean Producers lost 5 cents while trading 1.077 million units to close at $1.95. The bulk of the buying took place at $1.50 with Mayberry being the main buyer. Some investors are viewing reports in the press that a listed company is faced with import duty violation as being negative for the company and profits, thus the sell-off which started yesterday.

Advances positive | Trading elsewhere was moderate with just a total 5.42 million shares trading at a value of $56.6 million. The advance decline ratio moved back into the positive once more but not as strong as on Wednesday, with 7 stocks advancing in price versus 5 that declined.

The all Jamaica index climbed by 522.95 points (Wednesday 343.29) to close at 90,562.68, the market main index closed at 88,297.86 up 297.05 (Wednesday 194.99) points and the junior market gained 22.95 points in closing at 769.78 driven by the price movement of the Lasco shares.

Main Market | Hardware & Lumber put on 50 cents to close at $4.35 on low volume. Grace traded 8,120 shares as the stock closed at $60.05 and as the stock gained $1.05 today toad to the $1.50 gained on Wednesday. Kingston Wharves gained 25 cents to close at $8 as just 5,500 shares traded.

IC bid-offer Indicator| At the end of trading, the Investor’s Choice market indicator shows that bids for 6 stocks were higher with the junior market accounting for 4, as 3 stocks (two from the junior market) had offers that were lower than their last selling price.

JSEIndicesJun20

Filed Under: JSE Main Market, Stock Market Tagged With: , ,

JSE: Prices recover but moderate trading

June 19, 2013 by

Wednesday, 19th June 2013 | The local market recovered some of the losses it suffered yesterday which flowed mainly from crosses that Mayberry did for a number of stocks. In today’s trading, National Commercial Bank traded 2.976 million units at a value of $61.1 million of which Mayberry crossed $2.8 million for in house purposes at a value for $57.5 million.

Advances positive | Trading elsewhere was moderate with just a total 4.19 million shares trading at a value of $71.6 million. The advance decline ratio moved back into the positive once more with 12 stocks advancing in price versus 7 that declined.

The all Jamaica index climbed by 343.29 points to close at 90,039.73, the market main index closed at 88,000.81 up 194.99 points and the junior market was down 6.89 points in closing at 746.83.

Main Market | Jamaica Producers gained $2.65 to close at $20.70 as just 2,000 of its shares traded. Grace traded 3,000 shares as the stock closed at $59 and was up $1.50. Barita Investments lost 50 cents to close at a 52 weeks low of $2.50 as just 4,000 shares traded.

Juniors down | Six stocks traded in the junior market with 3 increasing in price and 2 falling. Blue Power moved up 14 cents to close at $9 but the bulk of the stock changed hands at $10.15 and the bid was at $9.10 at the end of trading, which suggests more price gains ahead. This activity comes on the heels of the announcement of results, which showed a 121 percent jump in profits for the year ended April. Lasco Distributors closed down 75 cents at $13 as 58,306 of the company’s shares traded. Lasco Manufacturing gained 25 cents to close at $14 as 15,144 of its shares traded. Caribbean Producers lost 20 cents while trading 47,175 units to close at $2 but the offer price was at $1.75 at the close with 134,822 units on offer.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer market sentiment indicator shows that bids for 6 stocks were higher, with 3 stocks that had offers lower than their last selling price. The Indicator points to more market gains ahead but gains could be moderate as the market awaits new information for it to continue the rally that started in April.

JSEIndicesJun19

Filed Under: JSE Main Market, Stock Market Tagged With: , ,

Reports of Insider trades

June 19, 2013 by

Trades by directors or persons or entities connected with company can be a powerful tool as to what may be taking place in a company. That may not always be the case as it all depends on the reasons for each action.

In the Jamaica, there are some companies that have ‘connected parties’ whose trading in the company stock may tell a story as to what can be expected down the road. For example, Mayberry Investment is one company that buying by insiders usually sends a strong message for future prospects. Jamaica Broilers is another company where insider buying and selling more often than not, sends a good message. We list below recent insider trades. Investors can make of them as they see fit.

JMMB | Jamaica Money Market Brokers Limited advised that a connected party sold a total of 5,000,099 JMMB shares during the period June 10 – 13, 2013. Also a connected party sold a total of 426,500 JMMB shares during the period June 4 – 12, 2013.

Honey Bun | Honey Bun (1982) Limited advised that a Director sold 5,000 Honey Bun shares on June 13, 2013.

Sagicor | Sagicor Life Jamaica Limited (SLJ) has advised that an Executive sold 2,000,000 SLJ shares on June 12, 2013.

PanJam | Pan-Jamaican Investment Trust Limited (PJAM) has advised that a director sold 14,200 PJAM shares on June 14, 2013.

MIL | Mayberry Investments Limited (MIL) advised that a related party purchased 26,400 MIL shares on June 14, 201 and that another trade purchase took place by related parties of 238,853 MIL shares during the period June 10 — 11, 2013 and another purchase of 6,739 MIL shares took place on June 5, 2013.

TCL | Trinidad Cement Limited (TCL) advised that two senior managers purchased 207,365 and 99,000 TCL shares on May 14, 2013 and June 4, 2013 respectively and that a person connected to a senior officer purchased 100,000 TCL shares on June 14, 2013.

JAMT | Jamaican Teas Limited has advised that a party related to a director purchased 18,948 shares during the period May 21, 2013 to June 6, 2013.

PURITY  Consolidated Bakeries Jamaica Limited has advised that a Senior Manager purchased 18,300, 000 in the company on May 31, 2013.

Filed Under: Company News, General Business News, JSE Main Market, Stock Market Tagged With: , ,

JSE: Mayberry dominated trading

June 18, 2013 by

Tuesday, 18th June 2013 | Mayberry Investments crossed 66,553,514 Supreme Ventures shares valued at $193,005,191, which they traded for in house purposes. In the process, they sold a few thousand to the market. The trade was one of many such large transactions that the brokerage company put through the market, helping to swell the level of trading above recent days. Many of the crosses resulted on lower prices as the main indices fell by 635.15 points (0.72%) to close at 87,805.82, the All Jamaican Composite declined by 1,118.19 points (1.23%) to close at 89,696.44 and The Junior Market Index advanced by 9.20 points (1.24%) to close at 753.72.

MIL crosses | There was trading in 31 companies, as 121,374,405 units changed hands valued at $329,186,751. The Mayberry trades dominated the following stocks: Berger Paints which traded 2.62 million units, closing 4 cents down at $2.41, Cable & Wireless 37.46 million units closing off a cent at 17 cents, Caribbean Producers with 4.64 million shares down 15 cents at the closing price of $2.20, Gleaner with 644,000 units down 4 cents to close at $1.16, Montego Bay Ice 132.177 units down 5 cents to close at $17.95, Pan Jamaican investments with 115,846 units valued at 6.11 million as the stock price slipped $4.60 closing at $51, Scotia Investments 227,000 units with the price dropping by $1.50 to close at $26.50. Mayberry crosses also dominated in the junior market with the three Lasco companies in addition to the large block of Caribbean Products.

Other stocks to trade in fairly sizeable volume are Carreras which traded 176,486 units at a value of $10.2 million as the stock lost $1.50 to close at $57, Grace Kennedy, 356,794 units between $57.50 and $60 before closing at $57.50 as investors expended $20.7 million on the company’s shares. Sagicor Life with 631,700 units, Scotia group with 304,000 units as it closed at $21.57 off 3 cents on Mondays last traded price.

Price Changes | Other stocks to record noted price changes include: Blue power closed at an all-time high of $8.86 up 16 cents and closed with a bid of $8.90, Carreras lost $1.50, Desnoes and Geddes lost 20 cents closing at $4.90, Grace shed 50 cents on the day, Lasco Distributors lost 15 cents to close at $13.75 Lasco Manufacturing gained 98 cents in closing at $13.75, NCB gained 80 cents at a $21 close.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer market sentiment indicator shows that bids for 6 stocks were higher, with 4 coming from the junior market and 2 stocks that had offers that were lower than their last selling price.JSEIndicesJun18

Filed Under: JSE Main Market, Stock Market Tagged With: , ,

KPREIT a medium term investment

June 18, 2013 by

Funding an operation with low interest rate foreign currency loans while the home based currency is weak can prove costly, and the way the accounting profession treats the changes in currency movement can mean profit or loss at least in the short term. That is what’s happening to  Kingston Properties Real Estate Investment Trust (KPREIT) in the latest results to March this year. Revenue was up 13 percent but profit plummeted to a loss, thanks to a foreign exchange loss of $14.5 million incurred in the quarter. The company recorded a net loss of $7.2 million after a tax credit of $3.56 million, but total group comprehensive income was $15.2 million, an increase of 144.8% versus $6.2 million reported for the quarter ended March, 2012.

Revenues | Revenues climbed to $23.5 million in the 2013 quarter up from $20.8 million in 2012. This reflects primarily rental increase for existing tenants and a stronger rental market for new tenants especially at the Loft II in Miami, the company’s management reported.

Group operating expenses, consisting of direct property expenses and administrative costs, were $14.8 million, versus $10.3 million for the similar period a year ago. Direct property expenses include insurance, property taxes, homeowners’ association (HOA) fees, broker fees and repairs & maintenance. These represented 60.4% of operating expenses for the March 2013 quarter versus 58.4% for the similar period last year. Increase in direct property expenses accounted for approximately $2.9 million of the $4.5 million increase in overall operating expenses. The major contributors were repairs & maintenance, HOA fees and property taxes.

KingstonProperitesREIT_logo130X140Group finance costs were $19.6 million for the quarter compared with $7.4 million for the similar period in 2012. These amounts include unrealized losses of $14.3 million and $2.5 million respectively, due to foreign currency translation losses resulting from the devaluation of the Jamaican dollar.

Balance Sheet | Significant balance sheet assets are Investment Properties of $850 million at the end of the quarter versus $641.4 million at March, 2012 and cash & cash equivalent of $195 million compared with $185.3 million for the similar period last year.

The primary drivers of the increase in the investment properties were fair value gains of $166.3 million on the Red Hills Road property and positive currency impact of $30.3 million on the Miami residential condominiums. Included in cash and cash equivalent is restricted amounts of $168.1 million.

Total group liabilities were $350.3 million at March, 2013 versus $331.5 million at March 31, 2012. These amounts include current and non-current loans payable at the end of the quarter of $325.1 million and $305.2 respectively. The liabilities are primarily mortgage loans. The devaluation of the Jamaican dollar resulted in an increase in the loans which are quoted in the United States dollar and amounted to US$3.4 million at end of March 2013 versus US$3.6 million at end of March 2012.

Cash flow | Net cash provided by operations was $23.9 million for the quarter versus $22.7 million for the similar period last year. A dividend was paid in the March 2013 quarter amounting to $9.9 million, a 63.1% increase over the $6.1 million paid in the March 2012 quarter.

Long term pay-off | Real estate investment is not a good cash generator at least not in the early stage of the investment. By its very nature, the level of income to be made in the short term will be limited. One strategy the company has is the investment in the apartments in Florida that could be disposed of when that market fully recovers and therefore provide cash flow for distribution or capital for expansion. Investors in the stock are likely to have to wait for a while for a big pay day. Nevertheless the stock provides a option to diversify ones investments.

Filed Under: Company News, Company Results Tagged With: , ,

JSE: Give back day

June 17, 2013 by

Monday, 17th June 2013 | Today was give back day for some of the gains generated last week as advancing stocks just barely outnumbered declining stocks with 2.24 million units traded for a valued of $18.8 million trading.

The main indices gave up all that they gained on Friday and more by the end of trading with blue chip stocks shedding the most in value. Carreras closed at $58 having lost $1 and so did NCB that lost $0.80 to close at $20.20 with 7,598 shares trading. JMMB lost 83 cents to close at $8.03 while trading 18,400 shares. Grace traded 114,298 shares as the stock closed at $58 and $1 down and Pan Jamaican Trust lost on $1.40 to $55.60 with 5,676 shares changing hands. Sagicor Investments closed up 39 cent at $16.50 as 7,096 shares traded.

Investors looking for yields picked up 250,089 JMMB 8.75 preference shares at $3.20 and 321,000 Proven 8 percent preference shares at $5.09.

Index falls | The all Jamaica Index closed down 719.52 points and ended at 90,814.63 points. The main market index is down 408.70 points and closed at 88,440.97.

Juniors down | The junior market index gained 15.14 points to close at 744.52 with only 5 stocks trading in this segment of the market. Blue Power fresh from 121 percent jump in profits for the year ended April posted a 5 cents increase as it traded 132,900 shares up to $8.70. Lasco Distributors closed up $1.39 at $13.90 as 116,000 of the company’s shares traded. Lasco Financial Services traded 270,440 units and closed at $10 up 10 cents on the day. Lasco Manufacturing did not trade but had a bid that was higher than the last traded price. Access did not trade but is poised to go higher as there has been little or no selling in the stock to meet demand but had a bid that is higher than the last traded price.

Advances positive | The advance decline ratio was far less positive today than on Friday with the previous trading day as 10 stocks advanced and 8 declining compared to Friday when 17 stocks advanced and 4 declined.

IC bid-offer Indicator | At the end of trading, the Investor’s Choice bid-offer market sentiment indicator shows that bids for 7 stocks were higher with 1 stock that had an offer that was lower than their last selling price. The Indicator points to more market gains ahead but it is most pronounced in the junior market, which has the higher number of bids over last traded price than the main market.JSEIndicesJun17

Filed Under: JSE Main Market, Stock Market Tagged With: , ,

Blue Powered huge profit increase

June 16, 2013 by

A Junior Market stock should hit the roof next week as the company Blue Power not only reported record profits, it blew away last year’s results with a stunning 121 percent increase as revenues rose by just 22 percent for the year ending April.

Profits for the financial year stood at $104 million compared to $47 million in the same period last year, an increase of 121 percent. The Lumber Depot division contributed $61 million to the profit, improving by 111 percent over the previous year while the soap division accounted for $43 million, an improvement of 137 percent over the previous year.

The results translate to return on equity of an attractive 35 percent up from 21 percent in 2012. The net asset value is $6.11 and the stock price of $8.65 is less than 1.5 net book value.

Combined sales for the year ended April, 2013 were $1.045 billion compared to $863 million in 2012, an increase of $182 million or 21 percent. For the year, the Lumber Depot division achieved sales of $742 million versus $620 million the previous year, an improvement of 20 percent while the Blue Power soap division moved to $303 million from $243 million, an increase of 25 percent.

BluePower150x150April quarter | For the fourth quarter sales rose to $339 million compared to $224 million for the same period last year, an increase of $115 million or 51 percent. Comparing the fourth quarter with the same period last year, the increase in sales for the Lumber Depot division was 77 percent, from $156 million to $276 million while sales for the Blue Power soap division actually declined by 6 percent.

Revenues for the 4th quarter was by far the best of any of the quarters with the December quarter coming closet with revenues of $267 million. The percentage revenue increase was also the best with a 13 percent increase in the December quarter coming closest. The latest quarter profit was the highest of any quarter with July and December quarters coming closest at $24.7 million and $23.2 million respectively.

Management’s comments | In commenting on the results, management said “The extraordinary enhancement in both sales and profits in the Lumber Depot division was due to two main factors: the first and most important being the award of a significant supply contract by an international agency and the second being the strategic management of our purchases of materials for resale. The overall increase in sales and profits of the Blue Power soap division was achieved largely as a result of a significant increase in sales of bathing soaps which are slowly but surely gaining acceptance in the market place.

As a result of the substantial improvement in profits, our balance sheet is healthy which will allow us to expand as well as be in a position to make adequate purchases of materials for resale and raw materials for manufacturing at reasonable prices.”

The company’s finances is in a healthy position with virtually no debt. Current assets of $390 million of which cash is $145 million up from $58 million in 2012. Current liabilities is $88.5 million.

Investor’s Choice is forecasting 2014 earnings close to $3 per share.

Update Wednesday 19th June | The Board of Directors of Blue Power Group Limited will meet on Thursday, June 27, 2013 to consider the payment of a dividend.

Filed Under: Company News, Dividends Tagged With: ,

JSE: JMMB dominates trading

June 16, 2013 by

Friday, 14th June 2013 | Scotia Investments bought 4.18 million units and Mayberry bought 1 million shares of Jamaica Money Market Brokers (JMMB) in today’s trading as the stock remains the dominant trader for a few days as it traded 5.22 million shares between $8.85 and $9 before closing at $8.85 up 25 cents for the day. So dominant was the JMMB trade that Carreras with 70,000 shares cost $4.07 million was the closet to it. Scotia Investments who bought some for in house purposes has been buying for the unit trust portfolio managed by them, IC Insider has been reliably informed.

Index Climbs | The all Jamaica Index closed up 324.39 points and ended at 91,534.15points. The main market index closed up 209.73 points and closed at 88,849.67. The Investor’s Choice bid-offer market sentiment indicator, points to more market gains ahead.

Carreras closed at $58 having lost $1 and so did NCB which lost $1 to close at $21 with 917 shares trading. Scotia Group lost 44 cents to close at $21.56 while trading 100,703 shares. It was 75 cents up on Grace trading 13,000 shares as the stock closed at $59 and $2 up for Scotia Investments which closed at $28 with just 1,100 shares trading and Pan Jamaican Trust put on $1.50 to $57 with 16,350 shares changing hands.

Juniors down | The junior market index slipped again in Friday’s trading by 3.43 points to close at 729.38 even as only one stock traded down in price with 5 stock advancing in this segment of the market but Lasco Manufacturing’s 73 drop cents did the damage. Lasco Manufacturing close at $12.77 with 135,136 units.  Lasco Distributors moved up by 44 cents to close at $12.51 while trading 222,412 shares. Lasco Financial Services traded 370,079 units between $9.50 and closing price of $9.90.

Advances positive | The advance decline ratio was even more positive today than yesterday with 17 stocks advancing and 4 declining on a day when 7.2 million shares changed hands with a value of $65.8 million.

IC sentiment indicator | At the end of trading, the Investor’s Choice bid-offer market sentiment indicator says ‘bullish’ with bids for 5 stocks were higher and 2 stocks had offers that were lower than their last selling price.

JSEIndicesJun14

Filed Under: JSE Main Market, Stock Market Tagged With: , ,